Guy Carpenter’s Dean Klisura, President and CEO, joined other market experts from Guy Carpenter for a virtual press briefing leading into the 2024 Monte Carlo Rendez-Vous.
In this article from Insurance Insider, Dean noted how reinsurers want to write more business going into 2025, but with an eye toward discipline.
“Reinsurer returns on equity remain very, very strong, so (they) want to hold their positions,” he explained, particularly regarding structures, attachment points and terms and conditions.
Dean also noted that capital in the reinsurance marketplace is “strong and accelerating.”
“For the first time in perhaps 3 years, we’re seeing the advent of new start-ups and new capital really being discussed to enter the marketplace in 2025.”
In this article in The Insurer, Guy Carpenter’s David Duffy, President, Global Clients, said he expects the property market for 2025 will continue to be influenced by trends observed so far in 2024.
“After a historic reset in pricing, program retentions, and coverage in 2023, 2024 has been characterized by a more orderly trading environment,” he said.
However, he said property reinsurance pricing—both for catastrophe and non-catastrophe lines—will likely continue to be sensitive to specific client and regional loss experience. For the year-to-date, David said global demand for catastrophe reinsurance limit has grown by approximately 10%.
Regarding long-tailed lines, Guy Carpenter’s Jennifer Paretchan, Global Head of Distribution and Market Relations, suggested capacity is expected to be “adequate.”
“But there will likely be scrutiny across various sublines, particularly those without positive underlying rate changes,” she explained. “Reinsurance terms and conditions will reflect how carriers managed their portfolios over the market cycles, actual versus expected loss development, and the impact of any underwriting pricing adjustment.”